Macy’s to Slash 2,500 Jobs in Major Restructuring

Scott Olson/Getty Images(NEW YORK) — Some Macy’s workers will soon be told they no longer have jobs. The retailer announced Wednesday it will be closing five stores and opening eight others.

As consumers turn more often to online outlets instead of brick-and-mortar stores, Macy’s is making adjustments to reduce costs. The company says it will lay off 2,500 employees, and by spring, five underperforming stores will be shut down. The department chain plans to open five new Macy’s locations and three Bloomingdale’s locations as part of an organizational restructuring.

Meanwhile, Macy’s says it will hire more workers in areas like online operations and direct to consumer shipping. The retailer says the restructuring will save the company $100 million per year.

Associates displaced by the store closings may be offered opportunities at other locations where possible, while full-time and part time associates who are laid off due to the closings will be offered severance benefits, the company said Wednesday.

On Monday, Jan. 13, stores at those locations will begin holding final clearance sales that will run between 10 and 11 weeks, with the exception of Fashion Place Mall, which will close Jan. 12 with no final clearance sale.